Gold Summit Forms Joint Venture With Astral Mining To Explore For High-Grade Gold Deposits
Gold Summit Corporation (“GSM”), (TSX VENTURE: GSM), announces that it’s wholly owned subsidiary, Gold Summit Corporation USA Inc., has signed an option agreement with Astral Mining US Corporation, a wholly-owned subsidiary of Astral Mining Corporation (“Astral”), TSX-V AST, for a joint venture to explore for high-grade gold deposits in the Carolina Slate Belt. The agreement allows Astral to acquire an initial 51% interest in any property within two designated gold districts, one both in North Carolina and South Carolina after total expenditures of US $300,000 over a two year period. Of that, US$100,000 is a commitment within one year.
After earning a 51% interest the parties will continue to fund exploration in the two designated gold districts unless Astral exercises its further option to acquire a total 70% interest in any property by funding further exploration and completing a feasibility study. In addition, Astral has the option to acquire a total 80% interest in any property by placing a mine into production. GSM’s team of consultants in the Carolinas will operate the joint venture subject to budget and programme approval by Astral.
The Carolina districts, previously described in a press release dated July 19, 2006, both contain old workings with outcropping “greenstone-style” quartz veining from which samples containing visible gold, confirmed by assay, were obtained. In the North Carolina district five linear gold soil anomalies and quartz-pyrite alteration are present. A key 170 acre tract was recently leased there. In South Carolina, an additional 50 acre tract was also leased for a total of 253 acres. It adjoins the Rhinehart lease where grab rock chip values in quartz vein outcrop and float, assaying between 3.4 and 144 g/t gold, were previously reported. (Dec 13, 2006 Gold Summit News Release).
The President/CEO of Gold Summit, Dr Anthony P. Taylor, comments “we look forward to our association with Astral who bring a strong technical background and financing capabilities to help discover high grade gold deposits in the Carolinas.” Dr Taylor subscribed to the seed capital of Astral and holds approximately 0.49% of Astral outstanding shares.
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